Oil prices plunge amid concerns over weaker demand and higher US inventories.

The downtrend picked up steam after WTI fell below the double bottom at 65.20. Last May’s low at 61.70 is major support from the daily time frame.

As the RSI recovers from an oversold situation, traders could be waiting to buy the dip in the demand zone. However, its breach could threaten the 16-month long rally.

On the upside, buyers will need to clear 67.50 before they could expect a meaningful rebound.