My indicators are giving bullish readings this week, and I want to capitalize on broader participation in the rally with a bullish trade on Conagra Brands, Inc. (NYSE:CAG).

More stocks are beginning to participate in the market’s rally, but I still think that the narrow leadership from the large tech stocks is worthy of concern.

Since the COVID-19 pandemic began, investors have started to view the FAANGM stocks — Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) — and other tech stocks as more defensive plays rather than growth-oriented tech stocks.

It’s hard to say when this tech rally will end, but I expect that it will not end well. If you’re going to ride this train, be prepared to get off in a hurry when it stops.

Rather than follow other investors into tech, I want to turn to the consumer staples sector, which has long been a defensive group for investors. CAG has challenged resistance at its pre-pandemic levels, and I think the stock is ready to move higher.

Conagra Brands Gets Good Publicity

It is easy to forget with the daily news being filled with stories about rising infection rates across the country, unemployment statistics and speculation about another round of stimulus checks, but there are still protests happening across the country.

Brands and sports teams have come under scrutiny. Washington’s NFL team retired its name and logo. PepsiCo (NASDAQ:PEP) examined the imagery on Aunt Jemima syrup. Mars said it would change the name of its Uncle Ben’s line.

CAG, which has faced criticism for its depiction of Mrs. Butterworth, will make changes too. This may not seem like much, but it is a bit of good publicity for the company, and it shows that this consumer staples stock, though from a sector associated with steady prices, can make changes when needed.

Heading Back to Pre-Pandemic Levels

CAG’s chart is what’s truly impressive. The stock has broken above strong resistance at the $35 level, and it is contending with pre-pandemic resistance at $37.

The company has shown a lot of strength despite problems associated with the pandemic. As a commercial and consumer food supplier, part of its business stalled when restaurants shut down. But even as infection rates rise and states debate closing down again, CAG is thriving.

Daily Chart of Conagra Brands, Inc. (CAG) — Chart Source: TradingView

Part of it is undoubtedly from good publicity. The stock jumped higher after announcing it would revamp its Mrs. Butterworth’s brand. But this company also offers a strong dividend yield — 2.32% — which is appealing in this low interest rate environment.

I’m betting investors looking for a place to put their money as they exit tech will turn to consumer staples like CAG. That could push it toward its 2019 high, giving traders a chance to collect.

Buy to open the Conagra Brands, Inc. (CAG) Sept. 18th $39 Calls (CAG200918C00039000) at $0.75 or lower.

InvestorPlace advisor Ken Trester also brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.