From what I understand, dollar cost averaging is more about buying the same dollar amount at regular chronological intervals with the assumption that, despite short or medium term fluctuations, the market goes up over the long run. Also, more shares are purchased when the price is low and fewer when the price is high. This strategy obviates both the need to time the market and the technical knowledge to make an informed buy/sell/hold decision.
I would see your scenario as more of a buy/sell/hold decision.