DigitalOcean Holdings, Inc. (DOCN Quick QuoteDOCN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, DOCN broke through the 20-day moving average, which 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.

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.

DOCN has rallied 9% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests DOCN could be on the verge of another move higher.

Looking at DOCN's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 8 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on DOCN for more gains in the near future.