8x8 Inc (EGHT Quick QuoteEGHT - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EGHT's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

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.

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.

EGHT has rallied 37.8% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates EGHT could be poised for a breakout.

Once investors consider EGHT'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 3 revisions higher, and the Zacks Consensus Estimate has increased as well.

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