Block, Inc. (XYZ Quick QuoteXYZ - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, XYZ's 50-day simple moving average crossed above its 200-day simple moving average, 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.

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.

Shares of XYZ have been moving higher over the past four weeks, up 5.4%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that XYZ could be poised for a breakout.

The bullish case only gets stronger once investors take into account XYZ's positive earnings outlook for the current quarter. There have been 11 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on XYZ for more gains in the near future.