* FTSE up 0.9 percent, rebounding after sharp falls
* FTSE All Share near 200-day moving average, RSI oversold
* Energy stocks rise, Credit Suisse upbeat on oils
By David Brett
LONDON, March 17 (Reuters) - Britain's top share index bounced back on Thursday, with miners in the lead, as technical indicators signalled stocks were heading towards being oversold.
By 1214 GMT, the FTSE 100 index 1.FTSE was 48.47 points, or 0.9 percent, higher at 5,646.70.
The index has had more than 50 billion pounds ($80 billion) wiped off its value since Japan suffered a huge earthquake on Friday.
"Technically we were due a bounce. In the short-term we are nearing oversold territory with the FTSE All Share reaching its 200-day moving average (around 2,904), which in theory should be a support level," Ian Williams, analyst at Altium Securities, said.
"Asian markets, having had the big sell off in the U.S., rallied into the close and the more violent movements in the currency markets we saw intraday seemed to have settled down as well, so it's probably not much more than an oversold bounce."
Energy stocks were top performers, driven by a 2.5 percent rebound for Royal Dutch Shell.
Credit Suisse raised its estimates and target prices across the Global sector based on strong crude price forecasts.
Brent crude traded 1.5 percent firmer, as investors nervously watched tensions in the Middle East as tensions in Bahrain escalated.
Heritage Oil gained 7.9 percent, after the Financial Times reported the exploration company rejected a 1.2 billion pound ($1.9 billion) takeover approach from a Middle Eastern company.
MINER GAINS
Miners, seen as benefitting once Japan begins to rebuild following its devastating earthquake, advanced against a backdrop of firmer metals prices. BHP Billiton rose 2.3 percent.
The sector is down almost 12 percent in 2011, and traders said other technical indicators pointed to the FTSE 100 as a whole looking cheap.
"The FTSE at the moment is ridiculously oversold. RSIs ( relative strength index) are running very low, signalling an oversold situation," a London-based trader said.
The FTSE relative strength index is trading around 29. A reading below 30 suggests a market is oversold.
Elsewhere, Vodafone climbed 2.3 percent, boosted by an upgrade to "neutral" by Evolution after an investor day.
Meanwhile, on the downside, Insurer Legal & General fell 1 percent to 110 pence after results, reversing earlier gains, and underperformed a 1.5 percent rise for the European insurance sector.
"We would be buyers (of Legal & General) at the 100 pence level and would expect to see a bounce back to 130 to 150 pence from these levels," a trader said.
U.S. stock index futures pointed to a higher opening on Wall Street on Thursday, rebounding from falls in the previous session.
U.S. inflation figures are due at 1330 GMT, together with the latest weekly jobless claims, while March's Philly Fed index and February lead indicators will be released at 1500 GMT.
(Additional reporting by Tricia Wright; Editing by Elaine Hardcastle) ($1=.6221 Pound)