Retail stocks are breaking out just in time for Black Friday. Katie Stockton has a bullish pick

As Black Friday approaches, all eyes are on the retailers, which draws our attention to the charts. After a prolonged trading range, the retail sector shows positive momentum ahead of the holidays. The SPDR S & P Retail ETF (XRT) is decisively through resistance that has been in place for months, and it has seen a notable shift in relative performance versus the S & P 500 this month. The breakout serves as a positive technical catalyst for the retail sector. One retail stock that has broken out alongside XRT is Genesco (GCO) , a specialty online retailer that primarily sells shoes under familiar brands like Levi’s and Johnston & Murphy. The stock has broken out above a key resistance level defined by the weekly cloud with confirmation of the breakout occurring mid-month. The breakout resolved a 16-month basing phase to the upside, signaling a bullish trend shift in the intermediate- and long-term. Helped by the breakout, the stock looks poised to maintain its positive short-term momentum on the back of Black Friday. The weekly MACD is positive, and long-term momentum has improved as well, evidenced by the monthly MACD which recently saw a bullish crossover after establishing a positive divergence with price. With the stock now pulling away from its flattened 12-month moving average (MA), our indicators suggest GCO will make progress toward next resistance near $40, above which secondary resistance is near $52. GCO is just one retail stock that has garnered positive relative strength this month, and its upside leadership could help continue to a more optimistic period for the broader sector. The ratio of GCO to the SPX has cleared its 40-week MA after holding long-term support, marking a potentially lasting bullish shift. For those who are long GCO, we recommend using the cloud model as a gauge of long-term support, currently $30.55, although the rising 10-week MA may be more helpful as a trailing stop-loss threshold. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. 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