Carvana Co. (CVNA Quick QuoteCVNA - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CVNA'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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

CVNA has rallied 120.6% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates CVNA could be poised for a breakout.

Looking at CVNA's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 8 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Investors should think about putting CVNA on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.