After reaching an important support level, Applied Materials (AMAT Quick QuoteAMAT - Free Report) could be a good stock pick from a technical perspective. AMAT surpassed resistance at the 20-day moving average, suggesting 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.

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.

AMAT could be on the verge of another rally after moving 12% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

Looking at AMAT's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on AMAT for more gains in the near future.