Yes it should be able to retract. I would start be cleaning the outside of the antenna with steel wool or mild scotch-brite pad then apply a little oil or grease to the outside to help it slide. Look for any slight kinks that may be interfering and try to gently straighten them. Beyond that you just need to work it in and out a bit through the range it will move and try to move it a bit further each time. Between cleanign off surface crud and working a little lube into it you should be able to get it moving. Just be careful and don't force it too much.
Mike
Mike