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

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show 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.

Shares of ERJ have been moving higher over the past four weeks, up 10.4%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ERJ could be poised for a continued surge.

Once investors consider ERJ's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 4 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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