Sigma Lithium Corporation (SGML Quick QuoteSGML - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SGML broke out above the 50-day moving average, suggesting a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

SGML has rallied 21.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests SGML could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account SGML's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

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