LendingClub Corporation (LC Quick QuoteLC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, LC's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Shares of LC have been moving higher over the past four weeks, up 24.4%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that LC could be poised for a breakout.

The bullish case solidifies once investors consider LC's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 5 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

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