Tencent Music Entertainment Group Sponsored ADR (TME Quick QuoteTME - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, TME's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

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.

There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.

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

TME has rallied 12.6% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates TME could be poised for a breakout.

The bullish case solidifies once investors consider TME'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 may want to watch TME for more gains in the near future given the company's key technical level and positive earnings estimate revisions.