From a technical perspective, Affirm Holdings (AFRM Quick QuoteAFRM - Free Report) is looking like an interesting pick, as it just reached a key level of support. AFRM recently overtook the 20-day moving average, and this suggests 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.

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.

AFRM has rallied 8.2% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests AFRM could be on the verge of another move higher.

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

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