From a technical perspective, Encore Wire (WIRE Quick QuoteWIRE - Free Report) is looking like an interesting pick, as it just reached a key level of support. WIRE recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows 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.

WIRE could be on the verge of another rally after moving 10.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

The bullish case solidifies once investors consider WIRE's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.

Investors may want to watch WIRE for more gains in the near future given the company's key technical level and positive earnings estimate revisions.