KUALA LUMPUR (Oct 31): Bumi Armada Bhd shares rose 2.53% in active trade at mid-morning today following a positive technical outlook on the stock.

At 10.40am, Bumi Armada gained 1 sen to 40.5 sen with 1.89 million shares traded.

PublicInvest Research said Bumi Armada is substantially oversold but the share price is well supported without creation of new low in the past three trading days, amid market weakness.

In a trading ideas note today, the research house said Bumi Armada's improving RSI and MACD indicators currently signal reasonable entry level, with anticipation of continuous improvement in both momentum and trend in the near term.

"Should resistance level of 46 sen be broken, it may continue to lift price higher to subsequent resistance level of 50 sen.

"However, failure to hold on to support level of 46 sen may indicate weakness in the share price and hence, a cut-loss signal," it said.