When it comes to trading the markets I believe in the Shell Game principle where the simple case of misdirection causes you to lose your wager.
While everyone has focused on the 100% completely OBVIOUS reason Oil has sold off today, Syria, I would suggest you consider Japan with its energy needs as it shuts down its nuclear power plants.
With that alternate reality in mind, you can actually trade against the pervasive headline news with the help of technical analysis.
Oil is in an uptrend channel. What is interesting is that this rally started in April 2013, way before Syria was a glint in the eye of John Kerry, so it should continue past whatever shall occur in Syria so says me.
Right now, the 38.2% retracement area is important. You can see that by the Hammer shaped candlestick and today's price action that seems to NOT be able to touch 105.85.
Today is a great day to try buying Oil with a limited stop around that area. If you are still hesitant, then wait until Oil closes above today's high (108.93).
If you don't believe a word I am saying then SELL Oil on a break below 105.85. What break below means is that a move of about 50 cents below that area would indicate some form of selling pressure. The first target would be an attempt to test the lower part of the trend channel, or about 104.50.
Or Bake your Cake, and Eat it Too by trading Oil through hedging (buying and selling).
If you want a suggestion as to how to trade oil through hedging, email me and I'll send you a live example.
Contact this overworked reporter at firstname.lastname@example.org