The GSL (Global Ship Lease Inc) bounce trade has hit the sole price target for a 16% profit in less than 3 hours from the entry posted earlier today. Consider booking partial or full profits or raising stops if your plan is to hold out for additional gains as GSL could very well see the next potential target (former T2 at 2.49) next week, should the shipping stocks rally from here. The previous daily chart (posted with the entry earlier) along with the updated 1-minute chart are shown below:

Many of the shippers highlighted in the recent video, including GSL, have pulled back to key support levels today following about a day & a half of intense profit taking as a result of the recent big rally & extreme overbought conditions in many of the shipping stocks.

GSL is a good example of what I like to refer to as a “bounce trade”. Similar to dropping a ball from an elevated distance, when you get a stock that has been experiencing a rapid decline, especially a near-vertical free-fall such as GSL over the last two days, a solid support level acts much like a hard floor, where the stock will bounce. Just as with a falling ball, the magnitude of that bounce is typically commensurate with the distance of the fall & the velocity of the downward movement of the stock when that support level is hit. (i.e- the larger the fall, the bigger the bounce). As 2.11 was the sole profit target for this trade, GSL will now be moved to the Completed Trades category.