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

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

AMAT could be on the verge of another rally after moving 15.9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

Looking at AMAT's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 13 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

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