The Shanghai Composite Index opened lower with three consecutive bearish candlesticks, showing a downward trend; in the short term, we look at the 20-day moving average (3845) as support. If it breaks below this level, it may head towards the previous low of 3816. However, individual stocks are continuously weakening, making it likely to undergo a correction.

Market outlook: The Shanghai Composite Index has three consecutive bearish candlesticks, breaking below the short-term moving average, which indicates a relatively weak trend. It is important to note whether today it can rebound back to the moving average or above 3888, or if it can recover the bearish candlestick from yesterday. Only then can the moving average avoid diverging downwards; otherwise, it will continue to fluctuate and weaken, and opportunities will have to wait until next week. From the perspective of moving average expectations, the 20-day line will continue to decline, especially as we approach the second half of next week, when a flattening expectation is anticipated.