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There is no reason Ford mustn’t wreck above $20, dealer says

Ford’s destiny appears to be like rosy to Inside of Edge Capital Control founder Todd Gordon.

With stocks of the automaker assembly resistance within the $20 vary, “I see no explanation why” why they are able to’t wreck decisively above that long-standing ceiling, Gordon advised CNBC’s “Buying and selling Country” on Thursday.

Ford’s inventory was once simply above $20 a percentage in premarket buying and selling Friday.

“As we have kind of been striking out right here, Ford has been appearing a large number of relative energy in comparison to the wider marketplace,” Gordon stated.

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The inventory “in truth appears to be like extra like Tesla” than business friends reminiscent of Normal Motors, he stated.

“If the marketplace drops and that inventory presentations relative energy, you have to assume when the marketplace recovers, you are going to see an upside transfer up thru 20,” he stated.

The elemental format appears to be like similarly supportive for Ford, Gordon stated. His company lately larger its publicity to the automaker, doubling its place in shopper discretionary shares after stronger-than-expected shopper spending knowledge, and upping Ford’s weighting in its enlargement portfolio.

Ford additionally larger November automobile deliveries 12 months over 12 months, grew its gross benefit margins, lowered a few of its long-term debt and is taking keep watch over of its semiconductor-related provide chain problems by way of partnering with chipmaker GlobalFoundries, he stated.

“We are bullish,” Gordon stated. “With a forged technical image, I see no reason Ford mustn’t transfer up thru 20.”

Disclosure: Inside of Edge Capital Control owns stocks of Ford.

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