Coty (COTY Quick QuoteCOTY - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, COTY 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.

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.

COTY has rallied 6.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests COTY could be on the verge of another move higher.

Once investors consider COTY's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on COTY for more gains in the near future.