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Traders say there is no reason for Ford to not exceed $ 20.

Ford’s fate looks rosy to Todd Gordon, the founder of Inside Edge Capital Management.

Gordon told CNBC’s “Trading Nation” Thursday that automakers’ stocks are facing resistance in the $ 20 range, and the reason they can’t break beyond the long-standing cap is “why.” I don’t know. “

Ford shares were slightly above $ 20 per share in pre-market trading on Friday.

“As we hang out here, Ford has shown a lot of relative strength compared to the wider market,” Gordon said.

“It actually looks like Tesla,” he said, more than its peers, such as General Motors.

“If the market is down and the stock is relatively strong, we have to think about the upside rising to 20 when the market recovers,” he said.

According to Gordon, the basic layout is just as supportive of Ford. His company has recently increased its exposure to automakers, doubling its position in consumer discretionary stocks after stronger than expected personal consumption data, and increasing Ford’s weight in its growth portfolio.

Ford also manages semiconductor-related supply chain issues by increasing vehicle deliveries in November year-over-year, increasing gross margins, reducing some of its long-term debt, and partnering with GLOBALFOUNDRIES, a chip maker. He said he was doing it.

“We are bullish,” Gordon said. “Given the solid technical situation, I don’t know why Ford shouldn’t exceed 20.”

Disclosure: Inside Edge Capital Management owns a stake in Ford.

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Traders say there is no reason for Ford to not exceed $ 20.

Source link Traders say there is no reason for Ford to not exceed $ 20.

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