Are you familiar with QLogic Corporation (QLGC)? If not, I think you should be, and here's why.

I have been following the stock since last fall when I wrote this piece - Is the Worst Now Behind QLogic Corporation (QLGC)?. In that post I said this - "Now that we have had a 'shakeout phase' and are seeing some signs of life I think this might be a stock to start looking at in terms of a basing pattern. In other words, I don't think I would chase the action today but it seems the stock is closer to a bottom than a top. I would expect that the former support near 17 will be a tough nut to crack so keep that in mind as a level to watch down the road." Here is the updated weekly chart with the area around 17 highlighted.

Chart Courtesy of Thomson Financial

The shares have been flirting with that overhead resistance since February but haven't had much luck in pushing through it. Today the stock is up more than 8% and challenging that zone after some upbeat comments from the company.

However, despite the basing pattern and upward progress since last fall, analysts are still on the sidelines. According to Zacks, only 2 of 11 analysts (18 percent) rank the stock with a "buy" rating.

It is also worth noting there is a moderately large short interest position. According to data collected by our Quantified Analysis group, 9% of the stock's float is sold short.

On a short-term basis, the stock is overbought so it wouldn't be surprising to see a pullback or rest in the next few days. However, the longer-term view continues to look constructive.