PepsiCo (PEP Quick QuotePEP - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PEP broke through the 20-day moving average, which suggests 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.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Shares of PEP have been moving higher over the past four weeks, up 5.8%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that PEP could be poised for a continued surge.

The bullish case only gets stronger once investors take into account PEP's positive earnings estimate revisions. There have been 9 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

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