Allison Transmission (ALSN Quick QuoteALSN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ALSN broke through the 200-day moving average, which suggests a long-term bullish trend.

The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.

ALSN has rallied 11.3% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests ALSN could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account ALSN's positive earnings estimate revisions. There have been 3 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

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