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Recently, there has been a lot of talk about the Federal Reserve raising interest rates. That is likely to turn out to be correct, but the Fed is only going to move the short-term, overnight rate. Longer-term rates will move independently (mostly) from short-term rates. Over the last few weeks, as investors have been increasing expectations for a short-term rate hike, longer-term rates have been falling slightly. That “flattening” is usually seen as a lack of confidence in the economy.

But if there’s one thing we do know, it’s that there is a bull in every market.

And today, we’ll open a bullish trade on Johnson & Johnson (JNJ). JNJ has been in a long-term uptrend, and recent bullish price action indicates that the stock is likely to enjoy a continuation of that trend.

JNJ enjoys the benefit of being a defensive stock in a time of market uncertainty. With JNJ’s global reach, a solid dividend and a product line that benefits not only from containing products consumers buy in both good times and bad, but also from containing name-brand products with strong margins. The pricing power that comes from these benefits puts JNJ in a strong fundamental position, which is quite attractive to traders on Wall Street these days.

While the S&P 500 continues to push up against resistance, JNJ is also showing signs of breaking out to new highs. We are conservatively looking for JNJ to challenge its recent high of $115, but we anticipate that it will continue to climb.

‘Buy to open’ the JNJ July 115 Calls (JNJ160715C00115000) for a maximum price of $1.60.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.