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

There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, 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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

ERAS has rallied 16.7% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates ERAS could be poised for a breakout.

Looking at ERAS's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 5 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 ERAS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.