From a technical perspective, Microchip Technology (MCHP Quick QuoteMCHP - Free Report) is looking like an interesting pick, as it just reached a key level of support. MCHP recently overtook the 20-day moving average, and this 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.

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.

Over the past four weeks, MCHP has gained 16.4%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.

Once investors consider MCHP's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 8 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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