Future trading at discount than the spot price after a breakout in daily charts

Hello Members,

recently I have observed that sometimes the future price of the stock trades at a discount than the spot price, can someone throw light on why this happens
Sometimes, when the future price of a stock is lower than the current spot price, it's called backwardation. This can happen because people expect interest rates to drop, think future economic conditions might not be great, or believe there'll be more supply later on. It's like a discount on the stock's future value, and traders consider factors like these when making decisions.

Similar threads