Telefonica Brasil S.A. (VIV) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, VIV'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.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Shares of VIV have been moving higher over the past four weeks, up 10.3%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that VIV could be poised for a breakout.

Once investors consider VIV'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 1 revisions higher, and the Zacks Consensus Estimate has increased as well.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on VIV for more gains in the near future.

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Telefonica Brasil S.A. (VIV):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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