KUALA LUMPUR: Shares of Bumi Armada Bhd may extend their gains in the near term after the stock moved above a key technical level amid strengthening bullish momentum.

RHB Investment Bank Bhd (RHB Research) said the counter recently climbed above its 21-day simple moving average (SMA), signalling that buying interest is picking up again.

"The counter underwent positive price action, showing that bullish momentum is gaining traction again," the brokerage said in a technical note.

RHB Research said the 21-day SMA line is also trending upwards, indicating that the stock's short-term trend remains positive.

"If the counter breaks above the 36 sen resistance level, it could continue climbing towards 39 sen, followed by 42 sen.

"On the other hand, a fall below the 33 sen support would dampen market sentiment and open the door for a correction," it added.