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

Shares of PRDO have been moving higher over the past four weeks, up 22.8%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that PRDO could be poised for a breakout.

The bullish case solidifies once investors consider PRDO's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 1 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

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