Why Profusa (NASDAQ: PFSA) Stock Looks Poised for a Massive Breakout
Bull pennant breakout, surging volume, and favorable momentum indicators, combined with a tight float, suggest a continued run higher for PFSA.
Profusa (NASDAQ: PFSA) has been making waves in the red-hot wearable technology sector with its innovative Lumee™ Oxygen platform, expansion into European markets, and a bold Bitcoin (BTCUSD) treasury strategy. But from a technical analysis standpoint, the stock’s latest price action paints an even more compelling picture for traders looking for the next explosive move.
Bull Pennant Breakout Signals Strength
In technical analysis, bull pennants and flags are continuation chart patterns that form during short consolidation phases following a strong rally. After an initial surge, price action contracts into a narrow range, forming a small triangular “pennant.” Volume typically drops during this consolidation before spiking again as the trend resumes.
That’s exactly what just unfolded with PFSA. Early Wednesday morning, the 7-day exponential moving average (EMA) crossed above the 20-day EMA, quickly triggering a 10% surge to the upside. This sharp move formed the “flag pole” of the pennant. Over the following hours, price action tightened into a textbook consolidation pattern, with volume tapering off.
As PFSA approached the apex of the pennant, volume roared back, skyrocketing by roughly 2,500% compared to the consolidation phase, and the stock blasted through the upper trendline. Following the breakout, PFSA retested that upper trendline from above, a common occurrence with such patterns. The level, which previously acted as resistance, held firm as new support, an extremely bullish signal that validates the breakout.
Momentum Indicators Suggest More Upside
The breakout didn’t just happen on price action alone. The relative strength index (RSI), a widely used momentum oscillator that measures the magnitude of recent price changes, added another bullish layer. Traditionally, an RSI above 70 signals overbought conditions, while below 30 signals oversold.
PFSA’s RSI, which spiked during the breakout, has since cooled to around 55, well below overbought territory. This “reset” gives the stock room to run before momentum indicators flash any warning signs. Combined with the bullish EMA crossover, traders now have multiple technical factors pointing to a likely continuation of the uptrend.
Also Read: This Tiny Wearable Tech Stock Just Joined Wall Street’s Crypto Treasury Movement
Strong Fundamentals Fuel the Technical Story
While traders focus on chart patterns, Profusa’s underlying business provides the fuel for a sustained rally. The company is carving out a leadership role in the $10 billion global tissue oxygen monitoring market, targeting conditions such as peripheral artery disease, chronic wounds, and critical limb ischemia. With CE mark approval secured, Profusa recently inked a distribution deal with Spain’s Dismeval, S.L., positioning itself for a Q1 2026 European launch.
Beyond oxygen monitoring, Profusa is advancing a continuous glucose monitoring platform aimed at a market of over 500 million patients globally. Its integration of AI-driven analytics into wearable biosensors moves the company’s products beyond passive tracking into active health management, a segment attracting growing investor attention.
Profusa also stands out for its bold financial strategy. The company recently initiated a Bitcoin treasury program, joining high-profile corporate adopters like Strategy (NASDAQ: MSTR) and MARA Holdings (NASDAQ: MARA). This move not only diversifies its reserves but also aligns it with one of the decade’s most dominant asset classes.
Technical and Fundamental Convergence
When bullish technical setups align with strong fundamentals, breakout moves often have staying power. PFSA’s bull pennant breakout, EMA crossover, massive volume confirmation, and RSI reset combine into a high-probability setup for further gains.
Adding even more fuel to the fire is PFSA’s exceptionally tight capital structure. With just 32.79 million shares outstanding and a reported float of only 5.17 million, according to Yahoo Finance, it doesn’t take much buying pressure to ignite a powerful move. In fact, the float may be even smaller. The Financial Times puts it at 1.14 million, while multiple traders on X are citing figures as low as 604,560 shares. However you measure it, PFSA’s tradable supply is razor-thin, creating the kind of setup where a burst of momentum can quickly turn into a sustained, multibagger run.
$PFSA despac 604K float per webull pic.twitter.com/9xDkXjJJzU
— Boogeyman Trades (@boogeymantradez) July 14, 2025
With the company executing on its five-pillar growth strategy, expanding into international markets, and leveraging both AI and digital assets, Profusa’s stock isn’t just flashing bullish signals; it’s backed by a growth narrative that could sustain momentum well beyond the initial breakout.
For traders and investors alike, it might be a good idea to position PFSA firmly at the top of your watchlist in anticipation of the next major surge.
Read Now: How to Capitalize on the Five Pillars of Growth in the Red-Hot Wearables Market
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at: invest@wealthyvc.com.
Wealthy VC and its employees are not Registered Investment Advisors, Broker-Dealers or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Wealthy VC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled through their website, news releases, and corporate filings, or is available from public sources and Wealthy VC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. Our website and newsletter are for entertainment purposes only. This website is NOT a source of unbiased information. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment.
Release of Liability: Through the use of this email and/or website advertisement, by viewing or using it, you agree to hold Wealthy VC, its operators, owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Wealthy VC-sponsored advertisements do not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to be construed as a recommendation by Wealthy VC or an offer or solicitation to buy or sell any security.
None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provided herein. Instead, Wealthy VC strongly urges you to conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. This report/release/profile is a commercial advertisement and is for general information purposes only. We are engaged in the business of marketing and advertising companies for monetary compensation unless otherwise stated below. WealthyVC and our controlling entity 1000724287 Ontario Ltd., have been compensated USD $125,000 for six months for investor relations by Profusa, Inc. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D and all reports published on SEDAR if the company featured is Canadian. Wealthy VC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors with a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions “may”, “could”, or “might” occur. Understand there is no guarantee past performance will be indicative of future results. Past Performance is based on the security’s previous day’s closing price and the high of-day price during our promotional coverage.
In preparing this publication, Wealthy VC has relied upon information supplied by various public sources and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this email and website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this email and website are believed to be reliable, however, Wealthy VC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of material facts from such advertisement. Wealthy VC is not responsible for any claims made by the companies advertised herein, nor is Wealthy VC responsible for any other promotional firm, its program or its structure.
