Group 1 Automotive (GPI Quick QuoteGPI - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GPI broke through the 20-day moving average, which suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Shares of GPI have been moving higher over the past four weeks, up 6%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that GPI could be poised for a continued surge.

Once investors consider GPI's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 4 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 GPI for more gains in the near future.