Semtech (SMTC Quick QuoteSMTC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SMTC broke through the 50-day moving average, which suggests a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

SMTC could be on the verge of another rally after moving 13.5% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case only gets stronger once investors take into account SMTC's positive earnings estimate revisions. There have been 7 higher compared to none lower for the current fiscal year, 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 SMTC for more gains in the near future.