However, as CPO Futures hourly indicator based on new contract month, after cutting loss sold at 3242 on 16 May, it was only turned buying 3294 at yesterday 1130am. The indicator will cut loss and turn sell again if palm oil futures price is traded 3274 and lower at 1130am today. Traders may start placing profit targets like 3334 and 3354 too.
With the 2 scenario as the above elaborated, traders should now able to know that a certain approach or strategy must be taken into consideration when there is a change of contract month and discount.