K12 (LRN Quick QuoteLRN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, LRN 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.

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.

Shares of LRN have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that LRN could be poised for a continued surge.

The bullish case only gets stronger once investors take into account LRN's positive earnings estimate revisions. There have been 3 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 LRN on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.