The Shanghai Composite Index's conservative upward target is 5,900 points, with an extreme downside scenario at 3,730 points, which is near the annual moving average. This period spans from September 2015 to July 2025, roughly a ten-year interval.

The Shanghai Composite Index is conservatively targeting 5,900 points on the upside, with an extreme downside at 3,730 points, which is near the annual moving average. From September 2015 to July 2025, roughly a ten-year period, the highest point was 3,731.69 (in February 2021). The October 2024 surge stopped at 3,674.40, just below the 3,700 resistance level. After breaking through effectively, what should we do? Confirm the pullback. Once resistance is broken, it becomes support. The market is easy to shift between offense and defense. It’s impossible for a single monthly bearish candle to signal a bear market, just as a single bullish candle doesn’t mean a bull market. The bearish candle in October 2024 was merely a shakeout after the initial move. During this period, accumulating low-position or oversold stocks will inevitably lead to big mid-term gains. Currently, chasing stocks that have already risen five or ten times makes it difficult to profit if the market later reaches 5,900 points.