Novo Nordisk (NVO Quick QuoteNVO - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, NVO 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.

Like other SMAs, 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 NVO have been moving higher over the past four weeks, up 6%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that NVO could be poised for a continued surge.

The bullish case solidifies once investors consider NVO's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.

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