The Shanghai Composite Index opened high with three consecutive positive candles, showing some upward movement during the day, but note that there is a certain deviation from the 5-day moving average, preventing a high pullback trend; there is a conditional possibility to close positive today, and also note that the probability of the opening gap being filled is present, do not chase the rise.

Index view: The Shanghai Composite Index is currently in a state of moving average convergence on the weekly chart (the 5/10 week moving averages are flat, and the 20-week moving average is trending upwards), essentially at a phase where the direction of the market change is being chosen (not yet chosen); on the daily chart, it is operating within a central range, with an upper boundary of 3936 and a lower boundary of 3815; the current upward rebound starting from 3815 has not yet confirmed its end, and as long as it does not break the 5-day moving average or 3871, there is a chance to challenge the upper boundary again.

Note: For the market to reverse, a breakthrough and stability above 3936 is needed for a chance to reach 4034.