From a technical perspective, Playa Hotels & Resorts N.V. (PLYA Quick QuotePLYA - Free Report) is looking like an interesting pick, as it just reached a key level of support. PLYA's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.

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

PLYA has rallied 17.1% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates PLYA could be poised for a breakout.

The bullish case only gets stronger once investors take into account PLYA's positive earnings outlook for the current quarter. There have been 1 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on PLYA for more gains in the near future.