Sure, it sounds counter-intuitive, but then again, take a small position since it is counter-intuitive and against the smaller uptrend. R:R as displayed, is also sound. Target is just around recent resistance-now-support. If trade goes lower, you may want to keep some on and trail the rest after initial target...who knows its potential?
However, if it breaks above the ranging line, in the event that it does, let it run and wait for a correction of some sort to play the long to new highs.