Shares gained 1.3% Thursday to close at $38.38 and were recently trading at $40.35.
The rally appears to be because Macy's left its full-year earnings guidance unchanged and increased comparable-sales guidance.
Still, the company's adjusted earnings per share missed Wall Street's expectations by a wide mark, and revenue was also below the analyst consensus.
Fiscal third-quarter adjusted EPS was 17 cents vs. analysts' expectations of 41 cents. Revenue came in at $5.63 billion, which was less than the $5.64 billion analysts had predicted.
On the technical side, the exaggerated price move on the chart forecasts a retracement lower.
The stock has been trending lower for the past two months. The chart shows the formation of a descending triangle, which is a bearish continuation pattern. On Thursday, the stock's price gapped above the upper Bollinger Band. That sets up a likely retracement back into range.