The key point still needs to be locked at the 3936 level.

The Shanghai Composite has been rising for eight consecutive days, reaching a high of 3977, close to the 4000 integer mark. Although there was a slight pullback on Friday, the overall technical pattern remains intact, with the core support still at 3936. As long as this level is maintained, the upward trend along the 5-day moving average can continue; if it breaks below, a switch to a consolidation mode is necessary. At that time, as long as the price stays above the 10/20-day moving averages for sideways consolidation, it may extend the time cycle, but each dip should be seen as a good entry opportunity.

On the sector level, commercial aerospace stocks are appearing in turn, but it’s important to note that short-term divergence is highly probable. The clearest signal is that the bullish candlestick bodies on the daily chart are gradually shrinking, indicating that the upward momentum is weakening. However, the trend framework is not broken; it just needs time to digest. Using the 5-day moving average as a reference is sufficient—if it doesn’t break, the trend continues. The real opportunities are not in the main index but in discovering individual stocks within sectors, especially those that experience high-volume pullbacks at high levels and then volume expansion.

The large consumer sector still warrants ongoing attention. Recent policy signals suggest that next year’s fiscal policy will actively boost consumption, and there will be continued investment to support old-for-new replacement projects for consumer goods, with scope and standards for subsidies also being optimized and adjusted. Taking retail as a sub-sector, the overall trend remains strong, but during pullbacks, it’s important to have insight. Stocks with high volume at the bottom and then decreasing volume during the pullback are worth following, while those that have surged to high levels and are leaders should not be chased.

Regarding trading strategies, gap trading, trial line, and pattern breakout methods are especially effective during hot market conditions. For example, with gap trading, the logic is quite simple. Breakaway gaps generally are not filled in the short term, so when the price retraces to the gap level, as long as it stabilizes, there’s a chance for a move upward afterward; conversely, if it fails to hold and the gap gets filled, it indicates that the previous strength is weakening. At this point, switching from an offensive to a defensive stance is the wise choice.