The Shanghai Composite Index presents a high open with three consecutive positive movements. Although there were upward movements during the day, attention should be paid to the divergence that has occurred with the 5-day moving average, and caution is advised against the risk of a pullback after the rise. The index has the potential to close positively today; however, the gap left in the early session is likely to be filled, and one should avoid blindly chasing after the rise in operations.

From the perspective of the index's operational pattern, on the weekly level, the 5-week and 10-week moving averages of the Shanghai Composite Index are flat, and the 20-week moving average remains upward. Multiple moving averages are in a converging state, indicating that the index is in a window period for change, with no clear direction for subsequent movement yet. On the daily level, it is experiencing fluctuations within a central range, with the upper boundary at 3936 points and the lower boundary at 3815 points. The rebound starting from 3815 points has not yet confirmed an end; as long as the index does not fall below the 5-day moving average or the support level of 3871 points, it is expected to launch another attack towards the upper boundary of 3936 points.

It is particularly important to note that if the market wants to achieve a trend reversal, it must break through and stabilize above the key level of 3936 points, only then will there be an opportunity to further challenge 4034 points.