Yum China Holdings (YUMC Quick QuoteYUMC - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, YUMC crossed above 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.

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.

YUMC has rallied 8.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests YUMC could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account YUMC's positive earnings estimate revisions. There have been 6 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

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