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

Shares of SMTC have been moving higher over the past four weeks, up 10.4%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that SMTC could be poised for a continued surge.

Once investors consider SMTC's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 6 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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