what about if I have a squadron half on an obstacle and my opponent draws line of fire to the side not on the obstacle? It of my understanding that it would not be obstructed. Is that correct
That's correct. But line of sight must traced between the points of the bases closest to each other. It's not enough for the attacker to see a bit of the defender's base somewhere.
(i.e. O---O, not O__O)
Los for fighters is from the center post of the base not the base its self and LoS for ships is from the yellow dots.
closed base to closed base is used for range only