There’s no reason why Ford shouldn’t break above $20, trader says

Ford’s fate appears to be like rosy to Inside of Edge Funds Management founder Todd Gordon.

With shares of the automaker conference resistance in the $20 variety, “I see no purpose” why they can’t split decisively higher than that extensive-standing ceiling, Gordon instructed CNBC’s “Trading Country” on Thursday.

Ford’s inventory was just over $20 a share in premarket buying and selling Friday.

“As we’ve sort of been hanging out in this article, Ford has been demonstrating a whole lot of relative strength when compared to the broader market place,” Gordon claimed.

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The inventory “really appears to be like extra like Tesla” than business peers this kind of as General Motors, he explained.

“If the market drops and that stock reveals relative strength, you have obtained to assume when the marketplace recovers, you happen to be heading to see an upside move up through 20,” he explained.

The fundamental layout looks equally supportive for Ford, Gordon mentioned. His agency not too long ago elevated its exposure to the automaker, doubling its position in purchaser discretionary shares after more powerful-than-envisioned client paying data, and upping Ford’s weighting in its advancement portfolio.

Ford also elevated November vehicle deliveries yr above yr, grew its gross gain margins, lessened some of its very long-phrase personal debt and is getting management of its semiconductor-linked supply chain problems by partnering with chipmaker GlobalFoundries, he stated.

“We’re bullish,” Gordon claimed. “With a strong technological image, I see no purpose why Ford shouldn’t shift up by way of 20.”

Disclosure: Within Edge Money Administration owns shares of Ford.