After hitting its 52week high back on May 1^st of this year Master Card (MA, quote) traded in a range from around $400 to $440 until it began to march higher back towards the 52 week high starting on September 6^th.  Since then the last 7 sessions Mater Card has traded sideways and has now pulled back to the near term trendline and has held the trendline support for the past 2 ½ hours of trading.

After catching an analyst upgrade last week Friday to buy from Citi Bank (C, quote) Master Card has pulled back and could be said forming an evening star but only time will tell if price action actually forms the candlestick pattern.

Even though the evening star is bearish pattern the bullish engulfing candlestick on September 20 in my opinion trumps the bearish formation.  See the problem the both candlestick patterns are forming with a pattern itself know as a flag and statically price will continue out in the direction of the trend from a flag.  Price is also holding the trendline support as well.  Couple it with that price action has been resting at the natural resting of 27% and 18% extension levels of the upward Fibonacci wave puts more weight on the flag and bullish engulfing patterns.

However, this poses some risk as price could seek out the previous range thus those looking to play this Master Card from the bullish side may want to consider using options to define and set risk up front.

The Fibonacci wave target is at $487 some points higher.

Master Card’s Bottom Line

With the premise that Master Card has the potential to move higher in the next couple of weeks consider looking at the October expiration 455 call options for $7.60.  That is slightly over 1.5% if the current trading price of $454.50.