After reaching an important support level, CareCloud, Inc. (CCLD Quick QuoteCCLD - Free Report) could be a good stock pick from a technical perspective. CCLD recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.

There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

CCLD has rallied 147.4% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates CCLD could be poised for a breakout.

Once investors consider CCLD's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 2 revisions higher, and the Zacks Consensus Estimate has increased as well.

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