You want to calculate the 14-day period Relative Strength Index (RSI) for stock A at the end of the 14th day, as represented by the following table:

Day Price at the end of the Day

1 $37

2 $40

3 $41

4 $43

5 $40

6 $39

7 $42

8 $46

9 $45

10 $47

11 $52

12 $56

13 $53

14 $52

1. Calculate the 14 day period RSI for stock A, starting from the end of the 14th day.

(Hint: Average gain = sum of gains over 14 days/ 14; average loss = sum of losses over 14 days/ 14)

1. Is stock A overbought or oversold according to the RSI calculation in part a? What is your recommendation for this stock?