Kraft Heinz Plunges 7% To 2024 Low On Heavy Volume As Technicals Turn Bearish

The Kraft Heinz (KHC) declined 6.97% in the latest session, closing at $26.02 on elevated volume of 43.3 million shares. This sharp downside move breaches key near-term support levels and signals deteriorating investor sentiment.
Candlestick Theory
The September 2nd session formed a long-bodied bearish candle closing near its low ($26.02 vs. daily low $25.84), demonstrating strong selling pressure. This follows an August 29th shooting star pattern (high: $28.08, close: $27.97) which capped a brief recovery attempt. Key support now rests at the $25.84 yearly low, with resistance near $28.08 (recent swing high) and $27.00 psychological level. Sustained trade below $26.50 invalidates July’s double-bottom pattern.
Moving Average Theory
The 50-day SMA has crossed below both the 100-day and 200-day SMAs, confirming a bearish trend structure. Current price ($26.02) trades below all three averages (calculated at approximately 50-DMA: $27.50, 100-DMA: $28.30, 200-DMA: $30.00), reinforcing long-term bearishness. The descending order of these averages creates dynamic resistance, with any upside likely capped near the 50-DMA.
MACD & KDJ Indicators
MACD (12,26,9) shows sustained negative momentum with the histogram extending further below zero after a late-August bearish crossover. KDJ (14-period) registers oversold conditions at %K:18/%D:25, though the main trend remains downward. A bullish divergence appears to be forming as the August price low ($25.84) coincided with a higher KDJ low, suggesting potential weakening of bearish momentum, though this requires confirmation through price action.
Bollinger Bands
Price recently broke below the lower Bollinger Band (20-day, 2σ) during the 6.97% sell-off, signaling an oversold extreme. The bands are expanding after contracting in late August, indicating volatility surge. The last close near the lower band ($25.84 support) combined with bandwidth expansion suggests possible consolidation, but the primary downtrend remains intact unless price reclaims the 20-day SMA (middle band, ~$27.20).
Volume-Price Relationship
The breakdown was validated by volume 84% above the 20-day average, confirming strong bearish conviction. Conversely, the August 22-29 recovery saw diminishing volume, signaling weak buying interest. Elevated volume on down days throughout July-August reinforces distribution patterns. This volume asymmetry suggests continued downside vulnerability.
Relative Strength Index (RSI)
The 14-day RSI has plunged to 28.76, entering oversold territory. While this could foreshadow a technical bounce, previous oversold RSI readings in early July and late August preceded only fleeting recoveries before new lows. The breach of the 30-support level without positive divergence warns against premature reversal calls. RSI must hold above 25 to avoid capitulation risk.
Fibonacci Retracement
Applying Fibonacci to the major decline from $36.21 (Sept 2024 high) to $25.84 (current low), key retracement levels are: 23.6% ($28.29), 38.2% ($30.18), and 50% ($31.03). Recent price rejections near $28.29 (August 29 high) confirm this as strong resistance, coinciding with the 50-DMA and forming a multi-indicator confluence zone. The 23.6% level should now cap any near-term bounce attempts.
Concluding Insights
Technical confluence overwhelmingly favors bears: the breakdown below $27 support, volume-backed selling, moving average alignment, and Fibonacci resistance at $28.29 collectively signal continued downside risk. While KDJ/RSI oversold readings and Bollinger Band expansion may trigger a tactical bounce toward $27.00–$27.50 resistance, the primary structure suggests eventual retest of $25.84, with a decisive break potentially extending losses toward $24.00. Long positions require reconquest of the 50-DMA ($27.50) to invalidate the bearish outlook. The September 2nd session’s high-volume breakdown establishes $26.50 as immediate resistance.