After reaching an important support level, Imperial Oil (IMO Quick QuoteIMO - Free Report) could be a good stock pick from a technical perspective. IMO surpassed resistance at the 20-day moving average, suggesting 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.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

IMO has rallied 5.6% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests IMO could be on the verge of another move higher.

Looking at IMO's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors should think about putting IMO on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.