Synopsys (SNPS Quick QuoteSNPS - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SNPS crossed above the 20-day moving average, suggesting 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 SNPS have been moving higher over the past four weeks, up 5.4%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that SNPS could be poised for a continued surge.

The bullish case solidifies once investors consider SNPS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.

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