Looking at a large-cap semiconductor stock with strong AI-driven demand and long-term customer contracts. RSI is flashing overbought as it hits all-time highs.
My instinct was to short the overextension but I’m second-guessing it — shorting a fundamentally strong stock at all-time highs feels risky with unlimited downside.
Context: looking at this from a swing trading perspective (couple of weeks), not long-term investing.
How do experienced traders reconcile technical signals like RSI against strong fundamentals? Is waiting for a pullback to go long the smarter play here?
Edit: better question — what’s the right way to think about this as a swing trader?
u/BetaApex — 17 days ago