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

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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 LMND have been moving higher over the past four weeks, up 14.9%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that LMND could be poised for a continued surge.

Once investors consider LMND's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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