The 27-year-old midfielder left Sheffield United to join Rangers on a free transfer this summer but has initially struggled in Scotland.
He only made his second league start in Rangers’ 1-0 win over Dundee last weekend and is still trying to find his feet since moving to Glasgow in the last transfer window.
But Ferguson feels that in his performance against Dundee there were signs of Lundstram getting the hang of things at his new club and he looked a bit more confident on the pitch.
He stressed that the pressure at Rangers is not comparable to being at Sheffield United as there was no pressure at Bramall Lane, but feels the Gers’ big summer signing is gradually but surely showing the reasons by Steven Gerrard wanted him badly in the summer.
Ferguson said on the Go Radio Football Show: “Game by game, you can see him starting to gain a bit of confidence.
“It is totally different from being at Sheffield United. He was never under any pressure at Sheffield United.
“He is a big signing for Rangers, he has played in the Premier League down in England and I see signs of him starting to show what he is all about.
“He has still not hit top form but he is getting there.”
Lundstram has made eleven appearances for Rangers across all competitions this season but only seven of them were in the starting eleven.