Heron Therapeutics, Inc. (HRTX Quick QuoteHRTX - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HRTX's 50-day simple moving average broke out above its 200-day moving average; this is 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.

There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum 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.

HRTX has rallied 18.8% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates HRTX could be poised for a breakout.

Looking at HRTX's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 3 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 HRTX for more gains in the near future given the company's key technical level and positive earnings estimate revisions.