Frontier communications(FTR) nearing important support

Technically Speaking

Price is coming up on the support zone b/w 3-4. 

The R/R seems to favor a long position at these levels. 

A good target would be the 2015 high print around 8.50.

Risk

For me, I always think about risk, not as volatility, but the probability of a permanent loss of capital. You can never know for sure what the probability is but I think most people can come to a conclusion about what is most likely. 

Read here and here for a rundown on the companies troubles.

What to do?

How much of your portfolio are you willing to risk to see if this trade will play out in your favor? 1%, 2%, 5%? Only you can answer that questions.