Macy's (M Quick QuoteM - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, M broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Shares of M have been moving higher over the past four weeks, up 5.2%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that M could be poised for a continued surge.

Once investors consider M's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on M for more gains in the near future.