After reaching an important support level, SQM (SQM Quick QuoteSQM - Free Report) could be a good stock pick from a technical perspective. SQM surpassed resistance at the 20-day moving average, suggesting 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.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Shares of SQM have been moving higher over the past four weeks, up 14.2%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that SQM could be poised for a continued surge.

The bullish case solidifies once investors consider SQM's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 5 higher, while the consensus estimate has increased too.

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