It is indeed subjective.
That area that you've marked the blue line from was actually from a bounce on a demand level, so I wouldn't necessarily call it a fakeout. (I appreciate that you're not looking at the entire chart here for overall context!)
As such, we've dropped below that blue line you've drawn too, but I'm interested to see how it plays out. I can certainly see why you've picked that line.
RE: Engulfs - how to pick support and resistance