Amazon (AMZN Quick QuoteAMZN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AMZN broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows 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.

AMZN has rallied 5.8% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests AMZN could be on the verge of another move higher.

Once investors consider AMZN's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 13 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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