DUBAI, Feb 22 (Reuters) - Firmer crude oil prices and upbeat global stock markets may encourage investors to buy shares in the Gulf on Wednesday, though Dubai may lag after turning technically bearish.
On Tuesday Brent oil futures reached their highest since Feb. 2 at $57.31 a barrel, before closing at $56.66. They are now at $56.90. MSCI's broadest index of Asia-Pacific shares outside Japan is up 0.5 percent.
Dubai's index sank 1.2 percent to 3,560 points on Tuesday, confirming a break of support on the mid-February low of 3,608 points; this triggered a double top formed by the January and February peaks and pointing down to around 3,500 points. The 3,608 point level is now resistance.
However, the market remains appealing on valuation grounds, at a trailing price-to-earnings ratio of about 9.7 times, according to Reuters data. Saudi Arabia's index is at 14.7 times earnings.
"This is the point where technical analysts and fundamental ones differ in opinion, but I think that ultimately the market is well-positioned compared to other emerging markets in the long term," said a Dubai-based portfolio manager. (Reporting by Celine Aswad; Editing by Andrew Torchia)