Ulta Beauty (ULTA Quick QuoteULTA - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ULTA crossed above the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.

Over the past four weeks, ULTA has gained 6%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.

The bullish case solidifies once investors consider ULTA's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 14 higher, while the consensus estimate has increased too.

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