After reaching an important support level, Lennar (LEN Quick QuoteLEN - Free Report) could be a good stock pick from a technical perspective. LEN 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.

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.

LEN could be on the verge of another rally after moving 7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

Once investors consider LEN's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 5 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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