After reaching an important support level, Elastic (ESTC Quick QuoteESTC - Free Report) could be a good stock pick from a technical perspective. ESTC surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.

ESTC could be on the verge of another rally after moving 18.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

Looking at ESTC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 9 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

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