After reaching an important support level, Trip.com Group Limited Sponsored ADR (TCOM Quick QuoteTCOM - Free Report) could be a good stock pick from a technical perspective. TCOM 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.

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.

Shares of TCOM have been moving higher over the past four weeks, up 22%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that TCOM could be poised for a breakout.

Once investors consider TCOM'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 3 revisions higher, and the Zacks Consensus Estimate has increased as well.

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