yes, you want that front section just loose enough so when released that midway "pivot bar" is about like your pic, just shy of the end of the slot, so it has as much forward movement as possible to allow full travel of the handle without hitting the other end of the slot .... also, make sure the wheel in the frame bracket there is lubed, they do tend to sieze up so the cable is rubbing back and forth getting damaged instead of turning
Bill