The bouncer technique, which is the main focus of this blog, can be a nice play when the stock follows through. When the bouncer does not follow through, the play available is usually still a high probability trade. Let's look at one of the stocks from the daily bouncer watch list, GLNG. As is shown in the first chart, there was support at $23.03 that we were looking for the stock to break through for the bouncer play to be in effect. If the stock does not break through $23.03, the next thing to look for is for the stock to break the resistance level on the long shadow of the candle stick. This is a resistance level to watch, because if it breaks through there the stock often will continue strongly in that direction. GLNG did break through this resistance at $23.93 today and shot up to a high of $24.87. We can see this move on the second chart. This setup is my second favorite, because it leaves an opportunity open even when a bouncer does not bounce.
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