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overdrive not working 700 1989

i have a 1989 volvo 740 turbo intercooler with a M46 4 speed transmission with overdrive. my overdrive stoped working about 4 months ago... a few days after it stoped working it magicaly worked again, up until 2 weeks ago when it stopped working and has not worked since. I tested the relay and the connections. the solenoid is getting a full 12v's and all the wires are good. i noticed when the solenoid is charged the plunger on the inside moves out about 1/16th of an inch to the end of the male part of the solenoid. as far as i understand this is to let fluid through and to put pressure on the overdrive making in turn on. is the solenoid plunger supposed to move only that small amount? and if it is what else could be the problem?

thank you for your time, hope someone can help me!






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