Ulta Beauty (ULTA) - Get Report shares are surging on Friday and it’s not just because of the robust jobs report.

The company reported better-than-expected third-quarter earnings results, and despite missing on revenue forecasts, it turned in promising enough quarterly results to give bulls some serious confidence.

The report has the stock hitting its highest level since the start of October; the shares have been under considerable pressure for several months now. Disappointing quarterly results in late August dealt a blow to the charts.

The beauty-products retailer's shares closed near $335 before the August report, then fell 30% in the following session. Now, the bulls are looking to reclaim some of those losses before year's end.

Given the big rally, it’s no wonder Ulta is Real Money’s Stock of the Day.

Trading Ulta Stock

Daily chart of Ulta stock.

Daily chart of Ulta stock.

As if a big-time rally wasn’t encouraging enough, Ulta is doing so on numbers that were far from robust. Earnings of $2.23 a share topped estimates by 10 cents, while revenue of $1.68 billion was marginally short of expectations.

Comparable-store-sales growth of 3.2% was slightly better than expectations for 3.1%, but management’s full-year outlook was a bit on the light end. Although, at least it was stable and not a reduction.

Wall Street appears to have priced in too much negativity ahead of the report. And with a result that comes across as simply not as bad as expected, the shares are enjoying a relief rally. 

The question now is how far that rally can take the stock.

Right now, the shares are contending with the October high. Further, the stock is closing in on the declining 100-day moving average. Both of these levels may act as resistance moving forward, which will mean bulls need to be more patient about a larger rally.

If $270 is resistance, let’s see how Ulta stock trades over the next few days. Does it consolidate just below resistance or pull back and give up a chunk of its gains? If it’s the latter, see that $250 acts as support.

But if $270 does not stymie Ulta stock in the near term, it could act as a gateway to higher prices. 

Above $270 and this area consisting of the former October high and the 100-day moving average may act as support moving forward. That opens the door for Ulta stock to possibly fill more of the gap from its August earnings drop.

Over $270 and bulls will be targeting the 50% retracement at $295, as well as the psychologically relevant $300 level. 

As always, remember to go one level at a time with Ulta stock. In this case, see how it handles $270. Above is bullish, while below may mean it needs more time to set up.