Kraft Heinz Co (NASDAQ:KHC) is serving up a bearish entrée to investors as its stock takes a nosedive into the dreaded death cross territory.

Down 11.03% over the past year and a steep 13.85% year-to-date, the iconic food giant's stock is sending strong sell signals across various technical indicators.

At the current share price of $31.86, Kraft Heinz is underperforming its key moving averages. The 5, 20 and 50-day exponential moving averages all hover above the stock price, reflecting a strongly bearish trend and indicating sustained selling pressure.

Here's the scoop on why analysts are waving the red flag:

Chart created using Benzinga Pro

The Death Cross: A Bearish Signal for Kraft Heinz

Kraft Heinz has recently formed a death cross, a bearish technical pattern that occurs when the stock's short-term moving average crosses below its long-term moving average.

In this case, the stock's 50-day simple moving average has crossed below its 200-day simple moving average, a signal that typically forecasts prolonged downward momentum. This pattern underscores the ongoing weakness in KHC's stock performance, reinforcing the bearish outlook suggested by other technical indicators.

Investors often interpret the death cross as a clear sell signal, anticipating further declines as the market sentiment turns increasingly negative.

Chart created using Benzinga Pro

1. Simple Moving Averages: The stock price of $31.86 is well below its 8-day SMA of $32.53, 20-day SMA of $33.26 and 50-day SMA of $35.21. The 200-day SMA also stands tall at $35.21, reinforcing the bearish outlook.
2. MACD Indicator: The Moving Average Convergence Divergence (MACD) indicator for Kraft Heinz sits at -0.85. This negative reading underscores the bearish sentiment, as the MACD remains below the signal line.
3. RSI and Bollinger Bands: With a Relative Strength Index (RSI) of 29.29, Kraft Heinz is officially in oversold territory. The Bollinger Bands add to the gloom, with the 25-day range at $31.22 – $36.05 suggesting further downside.

Read Also: Peering Into Kraft Heinz's Recent Short Interest

Chart created using Benzinga Pro

The combined weight of these indicators paints a grim picture for Kraft Heinz stock. The stock is not only struggling to stay above key moving averages but also grappling with persistent selling pressure. The bearish momentum is likely to continue, with the death cross signaling a potential for more declines ahead.

Kraft Heinz's current technical setup is more sour than sweet. As the stock flounders below crucial moving averages and key indicators signal a sell, the death cross could be the final straw pushing Kraft Heinz stock further into bearish territory.

• AI In The Drive-Thru: Chipotle, Starbucks, McDonald's Lead The Charge