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

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.

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.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Shares of RYAN have been moving higher over the past four weeks, up 22.8%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that RYAN could be poised for a breakout.

Once investors consider RYAN'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 2 revisions higher, and the Zacks Consensus Estimate has increased as well.

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