Brazil stocks choppy in early trading, real flat

SAO PAULO, Oct 27 (Reuters) - Brazilian stocks declined on Tuesday as investors proved reluctant to push share prices yet higher.

The benchmark Bovespa index .BVSP fell 0.9 percent to 64,479.33 in early trading, after a higher open followed soon after by a negative turn.

"The market's hit a really strong level of resistance at about 66,000 points," said Mario Avelar Fernandes, of Sao Paulo-based brokerage Intrader. "It's going to be volatile and undefined for a few days."

The Bovespa index rose above 66,000 as recently as last Friday, but has since struggled. The index eked out gains at the close of Monday after a late-afternoon rally, pushing year-to-date gains to about 73 percent.

"The profit-taking is going to be short-term," said Debora Morsch, chief executive of Solidus brokerage. "Investors are still very interested in Brazil."

Leading losses in the Bovespa index was heavyweight mining company Vale (VALE5.SA: Quote, Profile, Research), the world's largest iron ore producer, which shed 1.35 percent to 40.95 reais.

Vale is slated to report third-quarter results on Wednesday. Analysts contacted by Reuters expect the company's earnings to plunge 70 percent in the third quarter. [ID:nN03523096]

Also dropping were steelmakers, which had seen strong gains in recent weeks on the expectation of future construction projects. Brazil is slated to host the 2014 World Cup soccer tournament, and, earlier this month, Rio de Janeiro landed the much-coveted 2016 Olympics.

Gerdau (GGBR4.SA: Quote, Profile, Research) declined 1.9 percent to 28.07 reais, Usiminas (USIM5.SA: Quote, Profile, Research) lost 1.47 percent to 50.35 reais and CSN (CSNA3.SA: Quote, Profile, Research) fell 1.82 percent to 60.48 reais.