Master Mo follows a mostly predictable attack pattern through 2 phases, so you can play rather offensively. Before the circles, don’t move around while attacking him. You have to watch out for his double-palm attack, which has a very fast execution so it helps to just stand still.
When he turns red he will either perform a palm attack, slam the ground, or spin in the air. There’s a tell for each one, but the palm and ground slam are hard to tell apart. Just roll away when he turns red, then decide to chi-counter him or not. Jump when he ground slams, even if you rolled away; it has a deceptively large range.
Once he pops the circles, simply avoid standing in them to avoid his big super air combo. Roll in, hold X and move the left stick to rotate and move around to avoid the circles.