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

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.

MRK has rallied 5.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests MRK could be on the verge of another move higher.

The bullish case solidifies once investors consider MRK's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 10 higher, while the consensus estimate has increased too.

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