There’s no reason why Ford shouldn’t break above $20, trader says
Ford’s fate looks rosy to Inside Edge Capital Management founder Todd Gordon.
With shares of the automaker meeting resistance in the $20 range, “I see no reason” why they can’t break decisively above that long-standing ceiling, Gordon told CNBC’s “Trading Nation” on Thursday.
Ford’s stock was just above $20 a share in premarket trading Friday.
“As we’ve sort of been hanging out here, Ford has been showing a lot of relative strength compared to the broader market,” Gordon said.
The stock “actually looks more like Tesla” than industry peers such as General Motors, he said.
“If the market drops and that stock shows relative strength, you’ve got to think when the market recovers, you’re going to see an upside move up through 20,” he said.
The fundamental layout looks equally supportive for Ford, Gordon said. His firm recently increased its exposure to the automaker, doubling its position in consumer discretionary stocks after stronger-than-expected consumer spending data, and upping Ford’s weighting in its growth portfolio.
Ford also increased November vehicle deliveries year over year, grew its gross profit margins, reduced some of its long-term debt and is taking control of its semiconductor-related supply chain issues by partnering with chipmaker GlobalFoundries, he said.
“We’re bullish,” Gordon said. “With a solid technical picture, I see no reason why Ford shouldn’t move up through 20.”
Disclosure: Inside Edge Capital Management owns shares of Ford.
