After reaching an important support level, Dutch Bros Inc. (BROS Quick QuoteBROS - Free Report) could be a good stock pick from a technical perspective. BROS 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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Over the past four weeks, BROS has gained 12.6%. The company currently sits at a #1 (Strong Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

Looking at BROS's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 7 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

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