Maybe that's because there isn't one. You're not doing anything wrong I think so far. The circle intersects the line between you and the contact in the vicinity of the gridnumber AM24. Give me a moment while I upload my modified image.
The colors are in reference to Kylania's image I showed in another thread.
The light green protractor leg pointing ahead of the contact is the way to go.
Link to Kylania's image:
http://www.kylania.com/sh3/Intercept_Plotting.png