After reaching an important support level, Palo Alto Networks (PANW Quick QuotePANW - Free Report) could be a good stock pick from a technical perspective. PANW surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.

PANW could be on the verge of another rally after moving 10.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

Once investors consider PANW's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 15 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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