Retail stocks have been badly punished this year, but Todd Gordon of TradingAnalysis.com sees opportunity in the hammered group.

Examining a chart of the SPDR S&P Retail ETF (XRT), Gordon spots “support” at around the $38.50 level, which is roughly where it closed on Thursday.

So long as the ETF manages to hold that level, “the XRT could actually bounce back and retest the $40 or $41 level that it last hit in early August,” Gordon said Thursday on CNBC’s “Trading Nation.”

Why one trader sees a bounce for retail from CNBC.