In the past few sessions, Salamander Energy shares have suffered from a sharp fall and is now coming back on a significant level support.

From a fundamental viewpoint, the security is cheap with a PER of 12.51x for 2013 and 9.13x for 2014.

Prices follows a downward trend in the short term, under the GBp 197.8 resistance area. In the mid-term, the trend is neutral. Salamander Energy' stock is not likely to continue its downtrend because it is, now, near to the lower limit of its bullish channel around GBp 170, and may bounce towards the GBp 197.8 short term resistance.

So as to make the most of a potential technical rebound of Salamander Energy, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the GBp 197.8 resistance then 218.1. Investors should not insist under GBp 167.1 and are better to place a stop loss order under this threshold.