Consider the following scenarios.

Scenario 1. On November 22, the stock price of ABC stock was $70 and the S&P 500 stock index was at 4,682.

On November 25, the stock price of ABC stock was $75 and the S&P 500 stock index was 5,000.

Scenario 2. Stock ABC traded for several months at $50 and then fell to $45.

Consider the following statements.

I. A technical analyst would recommend buying ABC stock on the basis of the relative strength indicator. II. A technical analyst would recommend short-selling ABC stock if it trades at a price of $50 on the basis of its resistance level.

Which of the following is correct?