After reaching an important support level, Phillips 66 (PSX Quick QuotePSX - Free Report) could be a good stock pick from a technical perspective. PSX 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.

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.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Shares of PSX have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that PSX could be poised for a breakout.

Once investors consider PSX'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 5 revisions higher, and the Zacks Consensus Estimate has increased as well.

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