From a technical perspective, Pure Storage is looking like an interesting pick, as it just reached a key level of support. PSTG recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives 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.

PSTG has rallied 8.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests PSTG could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account PSTG's positive earnings estimate revisions. There have been 10 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 PSTG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.