From a technical perspective, Lululemon (LULU Quick QuoteLULU - Free Report) is looking like an interesting pick, as it just reached a key level of support. LULU 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.

Over the past four weeks, LULU has gained 6.9%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

Once investors consider LULU's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 10 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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