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 broke out above the 50-day moving average, suggesting a short-term bullish trend.

The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.

ULTA has rallied 15.7% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests ULTA could be on the verge of another move 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.

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