Electrolux AB (ELUXY Quick QuoteELUXY - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ELUXY's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

Shares of ELUXY have been moving higher over the past four weeks, up 10.4%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that ELUXY could be poised for a breakout.

Once investors consider ELUXY'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 may want to watch ELUXY for more gains in the near future given the company's key technical level and positive earnings estimate revisions.