Final answer:
The narrative technique used in the excerpt is stream of consciousness, which allows readers to experience the character's internal thoughts and dialogue seamlessly.
Step-by-step explanation:
The narrative technique found in the bolded text from the excerpt is stream of consciousness. This technique is evident as the passage describes a shift to the man's internal consciousness, allowing readers to access his thoughts, and then transitions to direct speech with virtually no demarcation. These seamless transitions between thoughts and speech capture the flow of the character's mind, mimicking the way thoughts and external stimuli interact in real life.