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

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

Over the past four weeks, VKTX has gained 8.5%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

The bullish case solidifies once investors consider VKTX's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 6 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

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