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

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves 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.

SIGI has rallied 8.8% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates SIGI could be poised for a breakout.

The bullish case only gets stronger once investors take into account SIGI's positive earnings outlook for the current quarter. There have been 1 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on SIGI for more gains in the near future.