After reaching an important support level, Lam Research (LRCX Quick QuoteLRCX - Free Report) could be a good stock pick from a technical perspective. LRCX 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.

LRCX has rallied 18.1% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests LRCX could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account LRCX's positive earnings estimate revisions. There have been 12 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 LRCX for more gains in the near future.