Brent crude is correcting amid pre-weekend profit-taking

The Brent market is witnessing a local decline after its recent surge to $107 per barrel. Investors are poised to take profits ahead of the weekend, resulting in a bearish candlestick, with current prices hovering around $105.

The Average Directional Movement Index (ADX) points to strong momentum. The DI+ line (22) sits above the DI- one (11), suggesting that buyers are in control. A slight decline in DI+ during today’s session is consistent with the normal dynamics of a correction within an uptrend and does not alter the medium-term outlook. The ADX’s reversal hints that the next move is likely to be bullish. 

Trading volumes also favor bulls, with spikes forming on green candles—a sign of robust buying interest. The $102 level appears to be solid support, drawing plenty of traders’ attention.

At the same time, the Stochastic Oscillator sits in overbought territory, raising the odds of a technical correction. Given the intraday drop to $105, the reversal is already underway. Quotes are likely to continue falling or consolidate at current levels until the market catches its breath.

On the fundamental front, the Strait of Hormuz blockade remains the key driver. Peace talks have recently hit a dead end, and shipping through this vital energy route is still disrupted. According to Goldman Sachs, in April, the crude market lost approximately 14.5 million barrels per day of the Middle East production. This fundamental stress will limit any significant decline: even a spark of escalation in the region could push Brent oil to test the resistance level in the blink of an eye. However, technical overbought conditions call for a short-term correction, since the market has already priced in the worst-case scenario, and any—even temporary—easing of tensions could trigger profit-taking.

The following trading strategy may come into play:

Buy Brent crude during a current decline to the $105.00–$105.50 range. Place Take profit at $112.00 and Stop loss at $99.80.

The forecast is valid from April 24 till May 1, 2026.