After reaching an important support level, ServiceNow (NOW Quick QuoteNOW - Free Report) could be a good stock pick from a technical perspective. NOW surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. 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.

Over the past four weeks, NOW has gained 6.3%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.

Once investors consider NOW's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 11 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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