The problem is it's all very subjective. Just looking at that chart I would say a big line is the one in blue. Lots of touches (red), turns from resistance to support and even a fakeout in the middle. So to me the current price is bouncing off support and on the way up...
It depends how you trade though, for me I'd put a sell stop below the blue line and catch all the trapped traders... but it's subjective...
RE: Engulfs - how to pick support and resistance