After reaching an important support level, PennyMac Mortgage (PMT Quick QuotePMT - Free Report) could be a good stock pick from a technical perspective. PMT surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.

A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.

PMT could be on the verge of another rally after moving 11.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case solidifies once investors consider PMT's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.

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