WSB: GameStop price analysis for March

Shares of GameStop (NYSE: GME) are up about 100% in March as the WSB crew continues to fight short-selling hedge funds. 

Fundamental analysis: Young investors unlikely to use stimulus money to invest in GameStop, BofA says

Bank of America (BofA) analysts believe young U.S. investors are unlikely to use the $1,400 stimulus money to buy GameStop stock. 

Back in January, a group of retail investors decided to invest in a handful of stocks shorted by hedge funds, including GameStop, AMC and others, sending their share prices skyrocketing. Since then, Wall Street analysts have been keeping a close eye on the non-fundamental factors in the GameStop stock. 

More specifically, BofA has been monitoring the number of threads about GameStop on Reddit, which these investors have been using to communicate and decide which stocks to boost. Furthermore, the bank has been also tracking the number of Reddit conversations related to stimulus checks and concluded that another GameStop trading mania is unlikely to happen. 

“Conservations involving stimulus appear to have peaked and GME shares declined over the past few days,” said Curtis Nagle, Bank of America data analytics research analyst.

“The number of recent conversations including both GME and stimulus is low. GME trading volumes are also steadily declining and short interest is down materially,” he added.

Technical analysis: Buyers want new highs

Shares of GameStop surged to as much as $483 per unit during the trading mania in January, but quickly lost 90% of its value. GameStop stock is 98% up this month, however, trading volumes are nowhere close to where they were two months ago. 

GameStop daily chart (TradingView)

Still, it looks like retail traders who are buying GameStop stock are resolute to reach new record highs above the $500 handle. However, the lower volume is not helping them as hedge funds are eyeing stops below the $170 mark.

Summary

Analysts at Bank of America doubt that young U.S. traders will use the fresh $1,400 stimulus checks to invest in GameStop once again. On the other hand, GameStop stock is trading much higher in March again as WSB investors aim for new highs.

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