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

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.

Shares of CVNA have been moving higher over the past four weeks, up 15.1%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that CVNA could be poised for a continued surge.

Once investors consider CVNA's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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