After reaching an important support level, WEX Inc. (WEX Quick QuoteWEX - Free Report) could be a good stock pick from a technical perspective. WEX 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.

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.

WEX has rallied 11.6% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates WEX could be poised for a breakout.

Looking at WEX's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 8 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

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