Synopsys (SNPS Quick QuoteSNPS - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SNPS 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.

SNPS has rallied 5.1% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests SNPS could be on the verge of another move higher.

Once investors consider SNPS'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.

Investors may want to watch SNPS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.