Salamander Energy is an Asia-focused independent exploration and production company with a number of licences spread throughout Indonesia and Thailand. Indicators argue for a technical correction after the last bullish movement recorded in past sessions.

From a fundamental viewpoint, firstly, we note the high valuation of the company. PER for the current year is at 23.75x and expected at 21.21x for next year. With a valuation ratio of 2.19x, the group appears overvalued compared to its business activity.

Technically, the security could run out of steam close to the GBp 211.1 resistance. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could improve and it should expect a return to GBp 179.8. Indicators that show an overbought situation confirm this scenario.

Therefore, the most offensive investors can benefit from the technical configuration to take a short position close to the GBp 207.3 long-term resistance. The objective will be fixed near to the GBp 179.8 support. Only the breakdown of this level would open up new bearish targets toward GBp 166.9. The stop loss will be set above GBp 211.1.