From a technical perspective, Shift4 Payments, Inc. (FOUR Quick QuoteFOUR - Free Report) is looking like an interesting pick, as it just reached a key level of support. FOUR'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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

FOUR has rallied 11.7% over the past four weeks, and the company is a #1 (Strong Buy) on the Zacks Rank at the moment. This combination indicates FOUR could be poised for a breakout.

Once investors consider FOUR'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 6 revisions higher, and the Zacks Consensus Estimate has increased as well.

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