Hey Henry,
Yep, your gorgonian should look like this on a fairly regular basis.
Its a defense mechanism that allows the gorgonian to shed the outer layer once it becomes covered in microalgaes. Without this mechanism, the coral would be sufficated by the algae. As Aquaknight said, having the gorgonian in a good flow area is key (also helps to prevent the algae buildup), it should actually be bending over in the flow, but not rubbing up against anything
.