Patterson-UTI (PTEN Quick QuotePTEN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PTEN broke through the 20-day moving average, which 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.

Like other SMAs, 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.

PTEN has rallied 7.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PTEN could be on the verge of another move higher.

Looking at PTEN's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 4 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 PTEN on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.