BeiGene, Ltd. (BGNE) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BGNE's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

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.

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.

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

BGNE has rallied 19.3% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates BGNE could be poised for a breakout.

The bullish case solidifies once investors consider BGNE's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 5 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on BGNE for more gains in the near future.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BeiGene, Ltd. (BGNE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research