Despite market choppiness and fears of a further downturn, small caps are still seeing good follow through. The market has recently seen Evofem Biosciences (EVFM) go from $0.35 to $1.50, Splash Beverage Group (SBEV) go from $1.70 to $3.10 and Revlon (REV) go from $1.40 to nearly $10.

With these moves happening, we decided to pick three small caps that we think have potential for similar moves.

Hallador Energy Company (NASDAQ:HNRG)

Hallador Energy Company began with oil and gas exploration and now have evolved to concentrate on coal development and transportation delivery along with renewables.

With the price of oil rising over the last four months, HNRG has risen from $3.30 to a high of $7.70. Oil recently pulled back from $120 to $100 and HNRG followed suit, falling by 25%.

This has now taken the daily chart to an interesting point. The price now sits at the 20-day EMA and also at the 50% fib retracement from the last rally. With Oil holding strong above $100 (now at $110), we think Hallador Energy could rise to new highs again.

Chart provided by TradingView

VAALCO Energy (NYSE:EGY)

Our next pick is also an energy company. These are still popular choices for small cap ideas as the sector has been the standout gainer of 2022. Oil prices were on the rise and already had our attention in January. The war in Ukraine just increased the demand for these companies.

So, while many sectors took a tumble with the market, energy has always been providing great technical setups. VAALCO is principally engaged in the production, development, and acquisition of crude oil properties in the African region.

EGY looks set for a breakout if oil continues higher. The 4-hour chart shows resistance that the price has rejected off. But just like Hallador, the price has risen over the past few days and could continue further.

$9.50 is marked out as a target. If you look at the weekly chart, this was a strong rejection across 2012-14. So keep an eye on this level if the price breaks out above $8.50. There may be some consolidation before breaking to $10.

Chart provided by TradingView

Agile Therapeutics (NASDAQ:AGRX)

This pick is not an energy company. In fact, the company does not have any recent news. However, investor interest in Agile Therapeutics stock has surged recently following the Supreme Court’s decision to vacate Roe v. Wade, which many investors are betting will trigger significant demand for contraceptives.

The 30-min chart sees pre-market prices at yesterdays lows. This is resistance-turned-support from the first two days of this move. We are looking for $2 to hold up in pre-market today. If this fails, $1.60 would be another entry target.

We think momentum could continue today and are looking for a $3 break. Yesterday saw 256 million shares change hand, so I expect momentum and interest to continue today.

If you like to find gap fills, AGRX also has a gap fill at $4.38-$4.40. However, as the price closed last week at $1.15, a 280% move to $4.40 may be overextended.

Chart provided by TradingView

Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.

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