OneSpaWorld Holdings Limited (OSW Quick QuoteOSW - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, OSW's 50-day simple moving average broke out above its 200-day moving average; this is 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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

OSW could be on the verge of a breakout after moving 9.6% higher over the last four weeks. Plus, the company is currently a #2 (Buy) on the Zacks Rank.

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